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DTEGY or SCMWY: Which Is the Better Value Stock Right Now?
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Investors interested in Diversified Communication Services stocks are likely familiar with Deutsche Telekom AG (DTEGY - Free Report) and Swisscom AG (SCMWY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Deutsche Telekom AG has a Zacks Rank of #1 (Strong Buy), while Swisscom AG has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DTEGY likely has seen a stronger improvement to its earnings outlook than SCMWY has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DTEGY currently has a forward P/E ratio of 11.35, while SCMWY has a forward P/E of 17.59. We also note that DTEGY has a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCMWY currently has a PEG ratio of 7.42.
Another notable valuation metric for DTEGY is its P/B ratio of 1.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SCMWY has a P/B of 24.93.
These metrics, and several others, help DTEGY earn a Value grade of A, while SCMWY has been given a Value grade of F.
DTEGY stands above SCMWY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTEGY is the superior value option right now.
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DTEGY or SCMWY: Which Is the Better Value Stock Right Now?
Investors interested in Diversified Communication Services stocks are likely familiar with Deutsche Telekom AG (DTEGY - Free Report) and Swisscom AG (SCMWY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Deutsche Telekom AG has a Zacks Rank of #1 (Strong Buy), while Swisscom AG has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DTEGY likely has seen a stronger improvement to its earnings outlook than SCMWY has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DTEGY currently has a forward P/E ratio of 11.35, while SCMWY has a forward P/E of 17.59. We also note that DTEGY has a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCMWY currently has a PEG ratio of 7.42.
Another notable valuation metric for DTEGY is its P/B ratio of 1.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SCMWY has a P/B of 24.93.
These metrics, and several others, help DTEGY earn a Value grade of A, while SCMWY has been given a Value grade of F.
DTEGY stands above SCMWY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTEGY is the superior value option right now.